Hire in Madagascar

Madagascar is an island nation located in the western Indian Ocean, off the southeast coast of Africa. Madagascar is the fourth largest island in the world and the first in Africa. It has a very rich ecosystem. More than 90% of Malagasy wildlife does not exist anywhere else on Earth. Madagascar is the world’s second-largest island country, after Indonesia, with 592,800 square kilometers. According to the United Nations, Madagascar is one of the least developed nations. Key components of Madagascar’s growth plan include ecotourism, agriculture, and increased spending on public services, private businesses, and health care.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Madagascar.

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Hire in Madagascar through an

EOR

Easily onboard your remote talent in Madagascar through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Madagascar

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Cost of living index

$

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Currency

Malagasy ariary (MGA, Ar)

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Payroll frequency

Monthly

Basic facts

Madagascar is an island nation located in the western Indian Ocean, off the southeast coast of Africa. Madagascar is the fourth largest island in the world and the first in Africa. It has a very rich ecosystem. More than 90% of Malagasy wildlife does not exist anywhere else on Earth. Madagascar is the world’s second-largest island country, after Indonesia, with 592,800 square kilometers. According to the United Nations, Madagascar is one of the least developed nations. Key components of Madagascar’s growth plan include ecotourism, agriculture, and increased spending on public services, private businesses, and health care.

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Madagascar.

Capital

Antananarivo

Official language/s

Malagasy, French

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Population

30.32 million (est. 2023)

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VAT - standard rate

20%

The holidays mentioned below are valid for the year 2025.

January 1New Year's Day
March 8International Women's DayOnly for women
March 29Martyrs' Day
March 30Eid Al-FitrMovable
April 20Easter SundayMovable
April 21Easter MondayMovable
May 1Labor Day
May 29Ascension DayMovable
June 6Eid Al AdhaMovable
June 8Whit SundayMovable
June 9Whit MondayMovable
June 26National Independence Day
August 15Assumption
November 1All Saints Day
December 25Christmas Day

The approximate time for sharing the contract with an employee in Madagascar is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • Employers are required to provide severance pay to employees dismissed for economic reasons.
  • An open-ended contract may be terminated without notice in the event of gross negligence.
  • The fixed-term contract cannot last longer than 2 years.

The National Social Insurance Fund (CNaPS) is a public industrial and commercial establishment jointly supervised by the Ministries of Public Service, Labor, and Social Laws, and Finance, Economy, and Budget. Its mission is to help the state achieve its policy on social protection for private sector workers. National Social Insurance Fund covers:

  • Family Benefits;
  • Accident Insurance and Occupational Diseases;
  • Retirement Benefits.

The employer contributes between 13% to 18%, depending on the sector, while the employee contributes 2%. The Social Security deductions are detailed as follows:

Benefits Employer Contributions Employee Contributions
Public Pension (disability, old age, survivors)
  • 4.5% (agricultural sector)
  • 9.5% (non-agricultural sector)
1%
Sickness and Maternity 5% 1%
Accident Insurance and Occupational Diseases 1.25%
Family Benefits 2.25%
Total 13% – 18% 2%

Working Hours

The legal working hours of employees or workers of one or the other sex, of any age, working on time, by task, or by a piece of work cannot exceed 173.33 hours per month, which on average is about eight hours a day.

Overtime

Overtime is defined as hours spent that are over the permitted working hours and results in a pay raise. No less than one and a quarter times (125%) the ordinary rate should be considered the overtime compensation rate.

Probation Period 

The probationary contract cannot exceed six months. It is renewable once for the same job.

Termination Notice Period

The length of a notice period depends on the length of service and employment type. It is set as follows: 

Length of service

 

Occupational Group
Group 1 Group 2 Group 3 Group 4 Group 5
Less than 8 days 1 day 2 days 3 days 4 days 5 days
Less than 3 months 3 days 08 days 15 days 1 month 1 month
Less than 1 year 8 days 15 days 1 month 1 and a half months 3 months
Over 1 year 10 days 1 month 1 and a half months 2 and a half months 4 months
Over 3 years Increase of 2 days per year of service within the above-referred total limit
Over 5 years 1 month 1 and a half months 2 months 3 months 6 months
Working Hours

The legal working hours of employees or workers of one or the other sex, of any age, working on time, by task, or by a piece of work cannot exceed 173.33 hours per month, which on average is about eight hours a day.

Overtime

Overtime is defined as hours spent that are over the permitted working hours and results in a pay raise. No less than one and a quarter times (125%) the ordinary rate should be considered the overtime compensation rate.

Probation Period 

The probationary contract cannot exceed six months. It is renewable once for the same job.

Termination Notice Period

The length of a notice period depends on the length of service and employment type. It is set as follows: 

Length of service

 

Occupational Group
Group 1 Group 2 Group 3 Group 4 Group 5
Less than 8 days 1 day 2 days 3 days 4 days 5 days
Less than 3 months 3 days 08 days 15 days 1 month 1 month
Less than 1 year 8 days 15 days 1 month 1 and a half months 3 months
Over 1 year 10 days 1 month 1 and a half months 2 and a half months 4 months
Over 3 years Increase of 2 days per year of service within the above-referred total limit
Over 5 years 1 month 1 and a half months 2 months 3 months 6 months

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The National Social Insurance Fund (CNaPS) is a public industrial and commercial establishment jointly supervised by the Ministries of Public Service, Labor, and Social Laws, and Finance, Economy, and Budget. Its mission is to help the state achieve its policy on social protection for private sector workers. National Social Insurance Fund covers:

  • Family Benefits;
  • Accident Insurance and Occupational Diseases;
  • Retirement Benefits.

The employer contributes between 13% to 18%, depending on the sector, while the employee contributes 2%. The Social Security deductions are detailed as follows:

Benefits Employer Contributions Employee Contributions
Public Pension (disability, old age, survivors)
  • 4.5% (agricultural sector)
  • 9.5% (non-agricultural sector)
1%
Sickness and Maternity 5% 1%
Accident Insurance and Occupational Diseases 1.25%
Family Benefits 2.25%
Total 13% – 18% 2%